KPS Health Plans, a Bremerton-based health insurer, has agreed to refund thousands of dollars to customers who were overcharged due to a billing system error.

About 235 customers are believed to have been billed at incorrect rates. Of those, 61 had the incorrect amount deducted from their bank accounts. Others received incorrect billing statements.

Insurance Commissioner Mike Kreidler has requested the company issue refunds and notify customers about the problem. KPS has said it will issue refunds right away with letters of apology to customers.

The company has agreed to pay for any insufficient funds charges incurred by customers as a result of these overcharges. KPS will also post on its website a notice to customers about the problem.

KPS customers with questions can call the company or contact Kreidler’s office at (800) 562-6900.